Crypto Assets Market Weekly Report

Market Overview

This week, the Crypto Assets market has shown signs of recovery, with the sentiment index rising from 11% to 35%. Although it still remains in the panic zone, there is a noticeable improvement. The market capitalization of stablecoins continues to grow, with USDT reaching 137.4 billion and USDC reaching 46.5 billion, indicating that institutional funds are still entering the market. The market recovery is mainly driven by two factors: first, the US CPI data meets expectations, and second, the market is optimistic about Trump's potential relaxation of encryption regulations. Overall, Altcoins have performed better than the market, especially DeFi and AI-related coins, which have seen significant increases, indicating that funds are beginning to shift from Bitcoin to small-cap tokens.

The TVL of the DeFi sector has slightly increased to 53.5 billion USD, with a month-on-month growth of about 1%. It is worth noting that DeFAI, as a product of the combination of DeFi and AI, has seen its market cap surge from 600 million USD to 3.2 billion USD within a week, reflecting the market's strong enthusiasm for innovative DeFi applications.

The AI Agent sector continues to develop strongly, shifting from simple AI token trading to deeper application scenario development. The rise of DeFAI marks the entry of AI applications in the Crypto Assets field into the 2.0 stage, mainly reflected in: user-friendly AI interfaces, portfolio management, infrastructure construction, and market analysis predictions. The development of leading projects such as Griffain, Anon, and AXIBT shows that the market is transitioning from proof of concept to practical applications.

The Meme coin sector performed flat this week, with market attention clearly retreating from last year's fourth quarter peak. This indicates that investors' risk appetite has shifted from purely speculative Meme tokens to projects with actual application scenarios. However, as discussions around Trump-related topics heat up, the market may see a new wave of political-themed Meme coin speculation.

Layer 1 public chains have overall stabilized and risen, but the increase is not as significant as in the DeFi and AI sectors. Among mainstream public chains, those with AI and DeFi ecological advantages perform better, reflecting that the value of underlying public chains increasingly relies on the prosperity of upper-layer application ecosystems. It is worth noting that public chains supporting AI computation have begun to attract attention, indicating that the next round of public chain competition may focus on AI computing capabilities.

The short-term market will be influenced by the Federal Reserve's interest rate meeting in January and Trump's inauguration, with expected increased volatility. It is recommended that investors focus on DeFAI projects that have actual application scenarios, avoiding the pursuit of purely conceptual speculation. In terms of DeFi investments, attention can be given to yield opportunities in machine gun pool projects, but strict leverage risk control is necessary. When choosing the timing, it is advisable to observe the policy changes brought by Trump's inauguration in the short term, avoiding blind chasing of highs and ensuring the safety of the investment portfolio.

Hot Tracks

DeFAI

This week, DeFAI has become the focus of the market, with its market value rising from 600 million last week to 3.2 billion, achieving over four times growth in a week. DeFAI can be divided into four categories of projects: abstraction/user-friendly AI, yield optimization and portfolio management, DeFAI infrastructure or platforms, and market analysis and forecasting. Currently, DeFAI is in its early stages, with most projects revolving around abstraction/user-friendly AI and market analysis and forecasting, with representative projects being Griffain, Anon, and AXIBT. Although DeFAI has experienced rapid growth and gained significant attention recently, its applications are still in the proof-of-concept stage, with most functionalities not yet realized. It is not advisable to blindly follow trends when investing; attention should be paid to the implementation status in various fields, and caution should be exercised regarding speculation risks.

DeFi track

The projects with rapid TVL growth in the past week are mainly concentrated in the machine gun pool projects:

• Folks Finance: Collaborated with DeBank to implement xChain account monitoring and launched social task activities; deepened cooperation with Algorand to promote the gALGO liquidity staking governance mechanism.

• Beets: stS token staking volume surpassed 88.99 million; partnered with PaintSwap to introduce SolvProtocol, launching scUSDC|USDC liquidity pool.

• AlphaFi: Launched an optimized liquidity solution; deeply integrated with the Sui ecosystem to promote DeFi development, showcasing strong community engagement.

• Echelon Market: Coming soon; recruiting engineers to develop DeFi applications; discussing roadmap with GlenMoves and others; announcing high yield to attract users.

• Astherus: Launched the USDF stablecoin, TVL surpasses 100 million USD; partnered with BNB chain to introduce asBNB minting; launched the Rh Points incentive system.

The TVL of DeFi projects increased from 53 billion USD to 53.5 billion USD, a growth rate of 0.94%, ending the negative growth situation of last week. This is mainly influenced by the overall upward trend of the market and the US CPI data, coupled with optimistic expectations regarding policies after Trump's inauguration, attracting funds to re-enter the DeFi field.

Performance in Other Tracks

public chain

Top 5 TVL Growth:

• Sonic: Launching multi-coin DeFi applications; collaborating with RedotPay to develop payment solutions; approved by Uniswap DAO for liquidity mining rewards.

• Hyperliquid: Launch of SOLV token; collaboration with Azuki-backed project ANIME, HYPE stakers receive airdrop benefits.

• Algorand: Completed the 4.0 version upgrade; Collaborated with Mastercard and others to promote instant settlement; Announced progress in practical applications.

• BSquared: Processed over 101 million transactions; collaborated with Segment Finance to strengthen the BTCFi ecosystem; promoting the transformation of Bitcoin into an AI innovation center.

• Mode: Launch the "Agentic Economy" initiative; announce the Mode 2025 DeFAI technology stack plan; initiate the AI Agent Founder School project.

Overview of the Rise Rankings

Top 5 Token Increases:

• ANON: Releases AUTOMATE TypeScript framework; launches DAO governance; implements multi-chain circulation.

• BUZZ: Won the Solana AI Hackathon; launched multiple feature updates; rapid user growth.

• CGPT: Launched on multiple exchanges; introduced smart contract auditing tools; partnered with ChainAware to promote anti-fraud solutions.

• ARC: Technical cooperation with AbstractChain and others; promote the popularization of decentralized AI.

• GRIFFAIN: Launched multiple features including "Agent GM"; Strategic cooperation with well-known projects to完善生态.

social media hot topics

This week, the most关注 on social media is Layer 1 projects. The market is generally showing wide fluctuations, rebounding after the release of CPI data. Altcoin projects have generally seen good price increases, while the rising APY of on-chain DeFi projects attracts user participation, driving interest in public chain projects.

Market Theme Overall Overview

In terms of weekly return rate, the PayFi track performed the best, while the RWA track performed the worst. PayFi was driven by the strong performance of XRP and other assets; the main tokens in RWA generally declined.

Outlook for Next Week

Macroeconomic factors: Trump's inauguration and the resignation of the SEC and CFTC chairs are the main influencing factors. If Trump mentions encryption policies, it will greatly boost market sentiment; otherwise, it may lead to a decline. Market volatility is expected to increase.

Sector Rotation:

• DeFi: Investors expect a market-wide increase in the first quarter, leaning towards holding coins and participating in machine gun pool projects to enhance returns.

• AI: AI Agent continues to attract attention, with a market size reaching 15.9 billion dollars. The focus is gradually shifting towards DeFAI, and the market is optimistic about the combination of AI and DeFi creating a new track.

It is recommended to pay attention to DeFAI projects that have practical applications and to be cautious of purely conceptual speculation. For DeFi investments, you can focus on machine gun pool projects, but you need to control risks. It is advised to observe policy changes after Trump's inauguration to avoid blindly chasing higher prices.